INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA

July 2016

2016 River Days

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Message from Your IIASD’s District 2 Director

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Well another year of River Days here and gone. How time flies. If you have not attended this event in the past, you need to put this in your calendar for next year June 21st-22nd, 2017. You get to take in some good CE credits along with trapshooting, golf or fishing.

It is a great opportunity to mingle with other people in our industry along with our company members. This is a great event and our Young Agents do a great job putting this on.

If you did not have a chance to read last months article by our IIABA State National Director, Dan Maguire, please take time to read as he sums it all up for how important it is to get involved. As a member of your board I get the privilege of working throughout the year with IIASD staff and the directors you have elected for your district and have learned so much and really enjoy being a part of the board.

Our next big event is in October , which is our Annual Convention. This event will be held October 2nd-4th at The Lodge in Deadwood, I hope to see you there.

Mindy Huntington Fischer Rounds & Associates, Inc. District 2 Director

2016 OFFICERSPRESIDENT

Pat Tollefson Insurance PlusAberdeen, SD

PRESIDENT-ELECTAnnette Conway

Black Hills Agency IncRapid City, SD

VICE PRESIDENTJesse Konold

Key Insurance Inc.Mobridge, SD

SECRETARY-TREASURERJanet Noteboom

The Insurance CenterWinner, SD

PAST PRESIDENTSteve Walker

First Madison InsuranceMadison, SD

IIABA STATE NAT’L DIRECTORDan Maguire

Black Hills Agency IncRapid City, SD

2016 DIRECTORSDISTRICT # 1

Jesse KonoldKey Insurance Inc.

Mobridge, SD

DISTRICT # 5Janet Noteboom

The Insurance CenterWinner, SD

DISTRICT # 2Mindy Huntington

Fischer Rounds & Assoc.Watertown, SD

DISTRICT # 6John Meyen

Rosholt Insurance AgencyRosholt, SD

DISTRICT # 3Rich Job

HUB International Mountain States LimitedVermillion, SD

DISTRICT # 7Derrick Linn

Leavitt Heartland Ins. ServicesSturgis, SD

DISTRICT # 4Amy Olson-Miller

McKinneyOlson InsuranceSioux Falls, SD

DISTRICT # 8Deana Taylor

Agents of InsuranceRapid City, SD

EXECUTIVE VICE PRESIDENTCarolyn Hofer

IIASDFort Pierre, SD

INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA

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The Executive Corner Carolyn Hofer, Exec VP

Rolling on the River!

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And Fun was had by All! Young Agents hosted another great River Days Event here on the Missouri River. If you missed it, be sure to save the dates for next year – June 21st and 22nd. When you can attend a continuing education class that brings together industry, regulators and agents on an important work comp issue and then hit the range for a little trap shoot and relax with friends over a great steak, it is a pretty great June day on the Missouri River. Insurance agents are the best at building relationshipsand this event is all about making friends and comingback year after year to meet up with them again. In working with the boat captains and fishing participants, it is great to see how many of our local fishermen look forward to guiding our members and partners every year. They have become great friends with you all and they feel just as much a part of our event as our IIASD members and partners. They all know about Trusted Choice Independent Insurance agents and what they know - they like! Moving on, we are putting together the next great event – Annual Convention on Oct. 1 – 4th, at The Lodge in Deadwood. You can take a look at the tentative agenda on Page 11 of this newsletter. Young Agents will be hosting a leadership seminar on Saturday afternoon prior to their popular YAC social held Saturday evening. A special Convention invite to agency principals this year - one free registration per agency with a special social for principals held on Monday prior to the banquet. If you haven’t been to Convention for a while or have never attended, give it serious consideration. Deadwood is a great place to take a break and network with fellow professionals. Great industry partners are waiting to meet and greet you. Play a little golf, learn new ideas and have a lot of fun.Three easy steps: 1.Save the date on your calendar – Oct. 1 – 4 2.Call overflow hotel-Springhill Suites to reserve room 605-559-1600 – same rate of $99 – ask for IIASD room block 3.Online registration is available on August 1st

Questions??605-224-6234 – chofer@iiasd.org

E&O EDGE – Megan Linn, E&O Administrator

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Be Careful What You Promise on Your WebsiteBy: Ellen McCarthy

Technology has done wonders to increase an insurance agency's productivity and sales goals. But the statements an agency makes on its website and marketing materials can lead to serious, unintended consequences from an E&O perspective. Consider John Client, who owns several older apartment buildings. He comes to your agency seeking property coverage for the buildings. You meet with John, visit the buildings and procure a policy based on the limits John specifically and unequivocally requests. Several months later, one of the buildings burns down due to faulty wiring. The carrier pays the full policy limits to John. Dissatisfied with his recovery, John then sues the agency, asserting that the amount of coverage on the building was inadequate and that the agency should have recommended higher limits. You meet with your appointed defense counsel and discuss the standard of care of insurance agents in your state. Your state has an "order taker" standard, meaning that an agent has an obligation to procure requested coverage without any duty to advise as to appropriate limits. Your defense counsel is relatively confident that you met the standard of care. But then, John amends the lawsuit. In the new complaint, John cites the agency's website language, which advertises that it procures "great insurance protection," that its "agents will help you choose the amount of coverage that best fits your individual situation,” “work hard to insure that you are fully covered for all those risks that most apply to you" and "produce the most complete plan to safeguard your business." Now, counsel informs you that the allegations based on your webpage in the amended complaint may be sufficient to establish that a "special relationship" existedbetween you and John. In the event of a special relationship between agent and customer in your state, the agent may have an affirmative duty to advise about types and limits of available coverage. Your website language makes you susceptible to an adverse finding. Subsequently, your E&O carrier enters into a negotiated settlement of John's claim with your consent.While hypothetical, the above situation is not at all unusual. Thoroughly review your website and other marketing materials, asking:•Could any representations create unrealistic customer expectations? •Does the content make promises the agency may not be able to fulfill?

• Would you want your website statements blown up on a poster board as a trial exhibit? Statements on your agency's website are not just advertising slogans. Don’t make promises unless you can deliver. Swiss Re Corporate Solutions has faced numerous claims against our insured agents in which creative plaintiff lawyers have used an agency's website language and/or marketing materials to bolster allegations of negligence. In fact, in researching for this article, we were amazed at how often this issue actually occurs in our claims scenarios,In one situation, counsel enlarged the language from an agency's website on to a large poster board for use in his opening statement. This exhibit highlighted statements from the agency's marketing materials, including, "Insurance is confusing…let us help you through the maze. We are your business partner." The plaintiff 's counsel used this language to make a very convincing argument that the agency had an enhanced duty to the customer and had, in fact, abandoned its "business partner" by not advising as to the appropriate coverage. Everyone was surprised by these developments, including the agency owner, who had forgotten about the website.

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Division of InsuranceNews and Views

SIMPLE SOLUTIONS TO ATTRACT AND RETAIN CUSTOMERS.

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Progressive Casualty Ins. Co. & affi liates. *Source: Millward Brown monthly brand tracking study, Q4 2012. 13A00200.B05 (09/13)

Karen BailoGM, Agency Sales

and Distribution

Share with Care

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As the U.S. summer travel season peaks, consumer use of sharing platforms continues to climb. With nearly 75 percent of Americans vacationing this summer, the South Dakota Division of Insurance encourages agents to familiarize themselves with the aspects of peer-to-peer transaction and how it can impact their clientele. Agents may be called upon to advise their consumers on the insurance risks of participating in the sharing economy.

Before participating in peer-to-peer transactions, such as home sharing or ride sharing, policyholders need to understand how the process works and the insurance aspects involved.

Home SharingRegularly renting out rooms or your home for a profit may be considered a home-based business. Many homeowners policies will not cover damage caused by or injuries to a paying guest. Consumers staying in such accommodations should confirm their homeowners, renters or personal liability insurance policies offer protection for potential damages to the rental property. Agents can offer to review a home-sharing user agreement to assist thepolicyholder, whether they are the host or the renter, to determine if their coverage is adequate for their role in the transaction. Ride SharingDo you have a client who is considering accepting a job as a transportation network company (TNC) driver? Or maybe a policyholder who will be utilizing a ride-sharing service while traveling? It is important they understand what their existing policy will and will not cover.

As their agent, you can encourage the policyholder looking to become a ride-share driver to thoroughly review the contract agreement with the company. Take the time to review with them any TNC insurance policy to determine any areas of responsibility in the event of an accident or injury to themselves and/or their passengers, as well as property damage. Help to identify any coverage gaps that may exist. commercial livery services.

It is important, as a driver, they understand most standard personal auto policies will not cover an accident that occurs when the personal vehicle is used for In some instances, the policy may specifically exclude ride-sharing activities. Be prepared to provide information on the possibilityof purchasing a commercial auto insurance policy, if it better meets their needs as they pursue this new venture.

Passengers utilizing ride-sharing services should verify an injury resulting from an accident while riding with the company will be covered. Most ride-sharing companies have liability policies to cover any passenger injuries.

You can access additional tips and information to help your policyholders be smart and safe when sharing is available through the National Association of Insurance.

Commissioners at www.insureuonline.org. The ‘Sharing Economy’ section offers insurance related considerations for consumers sharing homes, rides or personal items.

Kayla’s Technology Advice

3 Online Tools for Attracting Residual Leads

Article By: Zachary Emly

A N Y Q U E S T I O N S ?

ContactMike Mason / 605-870-0154Nathan Frolek / 701-205-9036 GreatAmericanCrop.com

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It’s every producer’s dream to wake up to new leads in their inbox. Imagine coming into the office Monday morning with new warm prospects waiting for your call. All it takes is engaging in a couple of online strategies.

1) Google AdWords

One of the easiest ways to gain leads online is through Google AdWords, or ads on related websites. You only pay for these short ads when people click and arrive at your website. If your ad fails to attract new people to your website, then you won’t have to pay anything.

Two things make Google AdWords more effective than traditional advertising:•Geo-targeting. With Google AdWords, you are able to choose how people will find you based on their location.•Analytics. Do you know how many people read your postcard and responded to it? Probably not.With Google ads, you can see the number of people who saw your ad and clicked it— and with in-depth analytics, you can even see how many of them contacted you.

When you do it right, Google AdWords can bring leads to your agency week after week.

2) Blogging and SEO

This is one of the most effective long-term strategies for generating online leads. When you take advantage of the combination, you can rank at the top of a search engine results page—and because millions of insurance-related searches occur every month, accomplishing that increasesthe likelihood that prospects will click on your website when performing organic searches online.

The best part about blogging and SEO? Once a blog gains traction and begins bringing you leads, it continues month after month without requiring much additional time or money.

Imagine a producer who is on duty 24/7 and does not need a salary. Now imagine a dozen of them with their own specialty markets. This is what your blog can do for you.

3) Social Media Can you really get new business from social media? If you’re just posting "Get a quote," the answer is no. But if you treat it like a proper sales or marketing tool, it can become an integral part of your lead generation process.

One way to use social media is with ads, which work similarly to Google ads in that you can specify what types of people see them. If you want to attract only college grads or market to those in a specific industry, for example, you can. Another way to use social media is by prospecting like you would offline. The trick is to find avenues with few barriers to one-on-one communication. Using Twitter and joining active LinkedIn groups are great ways to connect with people with little barriers.

Here are a few tips to get started:Start small. Too many agents who begin online marketing see everything they have to do and become overwhelmed. You can’t do it all right away, so take it one step at a time. Try one small AdWords campaign, or write your first 200-word blog post.

Schedule and plan. The biggest hindrance to every business person’s ability to get more prospects—both online and in person—is time. Planning your first 30 minutes is something easy you can do this week.

Stay educated. It takes experience and knowledge for these strategies to actually work. Continually learning while you engage in these practices will bring you success.

Your customers like working with a local agent to handle their insurance. We think you deserve the same kind of attention. That’s why EMC has a fully staffed branch office in your area — to respond quicker and with a greater understanding of your area’s needs. It’s just one of the many reasons you and your policyholders Count on EMC ®.

JENNIFER BAKER, CPCU, AIC-M, AINS, AISClaims Adjuster II EMC Omaha Branch

OMAHA BRANCH OFFICEPhone: 800-338-9735 | Home Office: Des Moines, IA © Copyright Employers Mutual Casualty Company 2015. All rights reserved.

www.emcins.com

LOCAL SERVICE FOR YOU

AND YOUR CLIENTS.

South Dakota Agents Bulletin_7x10_Jennifer.indd 1 10/7/2015 12:49:59 PM

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New Trade Secrets Law Impacts Employee Contracts by Jennifer Webb & Joseph Doherty

Last month, President Obama signed S. 1890, the Defend Trade Secrets Act of 2016 (DTSA), into law. The DTSA gives trade secret owners, such as agency owners, a new option to bring civil lawsuits for breach of confidential information, such as client lists, using federal law. Previously, trade secret owners could only bring such lawsuits under state law. The new law does not preempt state law, but rather allows trade secret owners to rely on state law as well as the DTSA. For any contract or agreement with an employee, contractor or consultant that governs the use of a trade secret or other confidential information, agencies may wish to include a whistleblower immunity provision—such as an explanation of certain employee rights—in said agreements to avail themselves of certain rights under the DTSA. Specifically, if a DTSA claim is based on an agreement or contract entered into or updated after May 11, 2016, exemplary damages and attorney’s fees are available to the trade secret owner only if the agreement or contract contains a whistleblower immunity provision. Any relevant contracts or agreements entered into on or before May 11, 2016 do not need the whistleblower immunity provision in order for the trade secret owner to recover exemplary damages and attorney’s fees. No matter when the agreement was entered into, failure to provide the notice does not impact one’s ability to pursue remedies under state law. In order to receive exemplary damages—which are limited to twice the amount of compensatory damages—and recover attorneys’ fees, the trade secret owner would also need to prove the misappropriation of the trade secret was willful and malicious. Even if the whistleblower immunity provision is not included, trade secret owners may still seek damages for actual losses and unjust enrichment. To assist member agencies, the Big “I” has provided a sample whistleblower immunity provision to use as a template when notifying employees, contractors and consultants of the immunity provisions in the DTSA. The sample whistleblower immunity provision is posted on the association’s Legal Advocacy webpage. The sample, “DTSA Sample Whistleblower Provision,” is listed under Memoranda and FAQs. Members must log in to view the document.

Insuring the Midlands Since 1891

Andy KrausVice President of Agencies

800-742-7433 akraus@fmne.com

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MISSOURI VALLEY MUTUAL

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NORTH STAR MUTUAL INSURANCE COMPANY, Cottonwood, MN, is seeking to

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Please visit the Careers tab at www.northstarmutual.com for further

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Secretary of State Kreb’s message:Notary Forms Update

As the overseer of the notary seal for South Dakota, I’m excited to let you know that we have updated the notary forms to make it more clear when submitting the application. The oath of notary public carries with it a serious obligation. Once appointed and commissioned, a notary public becomes a public officer charged with special trust and confidence in integrity and ability. To faithfully serve the public, the notary public must be knowledgeable about his or her responsibilities.

For more information and to print off the updated forms please visit our website at www.sdsos.gov

Use new notary forms effective as of July 1st, 2016

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Saturday, October 1st, 2016

3:00 pm – 5:00 pm Young Agent’s Leadership Session5:00 pm – 10:00 pm Young Agent’s Social – Everyone Welcome Sunday, October 2nd, 201611:00 am Golf Tournament – Shotgun Start Elk Horn Ridge Golf Club, Spearfish12:00 Noon Registration Opens5:00 – 8:30 pm Trade Show & Opening Dine Around9:00 – 12:00 pm Social Networking - Hospitality Room

Monday, October 3rd, 2016 7:00 – 8:30 am BreakfastMorning Session Options:8:30 – 11:30 am •Walking Tour Risk Evaluation • Crop Update and Ag Market Forecast •Differentiate Your Agency from Competition •Life Insurance – 3 One-Hour Sessions9:00 am Spouse Event - TBA11:45am – 1:15 pm Award Luncheon1:30 pm – 3:30 pm Motivational session3:30 pm Ice Cream Social3:45 pm – 4:45 pm Annual Business Meeting5:00 pm – 6:30 pm Agency Principal Social5:00 pm – 6:30 pm Social Networking – Hospitality Room6:45 pm – 9:30 pm Annual Banquet Entertainment: Matt Baker9:30 pm – 12:00 pm Social Networking – Hospitality Room

Tuesday, October 4th, 2016 7:00 -- 8:30 am Breakfast8:30 – 11:30 am Continuing Ed Sessions 11:45 am Closing Luncheon

2016 IIASD Convention ScheduleTentative Agenda

Online Registration will be available August 1st!

United Fire Group (UFG) was named—for the second year in a row—to Forbes’ “America’s 50 Most Trustworthy Financial Companies” list.

It’s simple.Trust matters.When choosing an insurance carrier, make it simple. Go with a company that is financially solid and trustworthy.

SETH Agency Technology Analyst at UFG

To learn more about our company, contact Tom Diefendorf at 605-763-8077 or go to UFGsolutions.com.

simple solutions for complex times® 12

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The companies of

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totallyA R E YO UWORRY FREE?

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WIN CASH!1st Place- $3,0002nd Place- $1,000

3rd Place- $5004th Place- $2505th Place- $250

$20 per ticket (1500 tickets will be sold)

All proceeds go to I-PAC & InsurPac.

Drawing will be held Oct. 3rd, 2016.

Support I-Pac and/or InsurPac

Drawing - Oct. 3rd, 2016 - Convention in DeadwoodThis is a “Win-Win Opportunity! – Proceeds go to SD I-Pac or InsurPac. They both work hard to protect our industry and small business. Contact IIASD at 605-224-6234 or send personal check to 305 Island Drive, Ft Pierre, SD 57532

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MOTIVATIONAL QUOTE OF THE MONTH:

"”A dream doesn’t become reality through magic; it takes sweat,

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Trust matters.

UNITED FIRE GROUP, INC. | www.ufgins.com | 800-332-7977 118 Second Avenue SE, Cedar Rapids, Iowa 52401

When choosing an insurance carrier, make it simple. Go with an established company that is financially solid and trustworthy.

United Fire Group (UFG) was named to Forbes’ “America’s 50 Most Trustworthy Financial Companies” list for the second year in a row.

The honor is straightforward and simple: trust matters.

Trusted Choice Joins In Sponsorship of 2016 SD State Fire School More than 500 firemen took part in the continuing education and training at the 2016 South Dakota Fire School in Sioux Falls on June 2nd – 4th. with firemen from all over South Dakota representing 98 Fire Departments. The Fire School hosted 54 classes and training workshops which qualified for State Certification and required continuing education on topics such as Ladders, Auto Extrication, Rural Pump/Attach Operations, Slicers, Water Rescue and Electrical Safety. IIASD’s $5,000 sponsorship was used to provide prime sponsorship of the Mobile Live Fire Training Unit and provide quality education classes. IIASD supports Fire Departments across the State with over $15,000 in grants each year. Fire Departments in IIASD Districts 2 and 5 will each be eligible for a $5,000 grant to be awarded in November.

Nomination process will open on October 15th.

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BIG NEWS!! A.D. Banker of the Dakotas has changed its name to

1st Dakota Insurance School.

We continue to partner with IIASD to offer the following:

**Licensing Materials and Classes (for Property/Casualty and Life/Health Exam

Preparation)**Continuing Education Classes**Online Courses and Webinars

We are continuing to offer the materials you are familiar with.

Be sure to check out our new website at www.1stdakins.com

Use Promo Code 1594626 to receive your 15% member discount

Sandy Kost1st Dakota Insurance School

2601 S Minnesota AveSuite 105-244

Sioux Falls, SD 57105605.271.4440 or 877.317.3087

sandy@1stdakins.com

FRAUD Convictions

FRAUD CHARGES

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Her gas shut off and facing eviction, Tina Shonk threw a blanket over a hot space heater and burned down her rented house for nearly $113,000 of insurance money. The Independence, Missouri, woman inflated the claim by moving broken equipment and appliances to the house. The junk was worth about $500 and Shonk stuffed her valuables into a storage unit. She owed nearly $8,000 in back rent, a sum that ballooned to nearly $10,400 when the house burned down. Shonk and two accomplices set the fire. She later moved into another house and planned to burn it down as well. Shonk received three years and three months in federal prison.

Dorian Leigh Dammer stole money by posing as a contractor for a legitimate firm. A Bridgewater, New Jersey widow needed roof repairs after Megastorm Sandy. Dammer said she worked for Vanguard Construction. She cashed three of the widow’s insurance checks totaling $28,770 yet never fixed the roof. Dammer then posed as an employee of MajesticInteriors, stealing three checks totaling $15,000 to install windows. Dammer pleaded guilty, must repay the money, and will receive probation when sentenced August 25. The case was handled by the state AG and Office of Insurance Fraud Prosecutor.

Several fraudsters were swept off the streets in two cases by Washington state’s insurance department. In the first case, Joshua Zabel rear-ended a Honda Accord in March 2014. The Bremerton man filed a claim with Progressive Insurance for severe damage to the front of his 2005 Ford Mustang. Progressive denied the claim because he had not purchased collision and comprehensive coverage. Zabel bought the coverage a few days after the March accident. He lowered his deductible from $2,500 to $100 on April 30. Zabel made another damage claim a few days later. A hit-and-run damaged his Mustang while it was parked outside his home, he said. The damage estimate was more than $8,900. Progressive contacted the owner of the Accord that Zabel had hit in March. She provided photos showing the damage to Zabel’s Mustang which matched the damage he claimed happened in May. Zabel received 24 hours of community service and a $1,000 fine. In the second case, Sean Ingram bought auto insurance from Middlesex Insurance Co. on June 5, 2015.

The Olympia man filed a liability claim on June 29 saying he had hit a 2010 Toyota Prius while driving his 2005 Honda Civic in Seattle on June 6. The other driver said the crash happened on May 17 and filed a damage estimate dated June 2. Ingram’s sentence was deferred after 10 days in jail.

Wanda Wyatt was perfectly positioned to make fake repair claims. She oversaw repairs and paid claims for the Pulaski County (Arkansas) vehicle fleet. During her 17-year career, Wyatt stole nearly $249,000 by creating fake damage claims. Insurance checks were issued and endorsed by the so-called claimant and also by Wyatt. She then deposited the money into her personal banking account. The largest payout was $10,000. The suspected scheme surfaced when the bank noticed irregularities in the checks Wyatt deposited. The county is trying to determine if the alleged thefts hiked the county’s auto premiums.

Damon Grippo swerved and crashed his rental Jeep into a fawn. At least that is what the Wyalusing, Pennsylvania man wanted Allstate to believe. Investigators did not buy it. Grippo crashed into a ditch and tried to shake down Allstate so he could pay a smaller deductible. Grippo’s car damage was consistent with hitting a pole or sign, not an animal. Investigators also found a small piece of wood in the bumper, and the bottom of the Jeep was covered with mud. Grippo later admitted he had lied. He was afraid to confess to police or the car rental company because he was on his grandmother’s insurance. Grippo is charged with insurance fraud with a hearing set for July.

A dentist bought Dr. Kenneth Webber’s practice when Webber retired. The new Glendale, California owner worked on patients then routinely billed insurers. Many claims were rejected because the insurer said the work already had already been done and paid for when Webber still was onboard. The insurance department dug into the billings finding at least 60 percent of Webber’s patient records were fraudulent. Webber faces up to 10 years in state prison if convicted.

www.claimsassoc.com

Jeff Jares, AIC AIM, President Christopher W. Madsen J.D. General Counsel

Adjusters – Sioux Falls

Nancy Almendinger Jennifer Andrisen Selzler Cory Beck Bill Blackman Lynn Bren Blake Dykstra Kay Greve Dave Johnston Collin Karsky Amy Kvernmo Chad Moore Wendi Peterson Kimberly Rausch Dave Sendelbach Tim Wieker

Adjusters – Rapid City

John Keffeler Bruce Eleeson

Case Managers

Kelly Rud RN BA LNCC Jane Kruse RN BSN Deb Whipple RN BA CCM Lori Schaefbauer RN BSN CCM We commit ourselves to providing the highest quality claims and case management services

available in our industry. Please visit our website for complete information.

Download Western National’s mobile app todayin iTunes or Google Play.

21

IIASD’s Schedule of Events for 2016

October 1st-4th

Board Meeting/ Annual ConventionDeadwood

Online Registration will be open for:

Convention: August 1, 2016

Go to www.iiasd.org to register.

2016 Convention Hotel Information:The Lodge in Deadwood is full.

Overflow Hotel Information:SpringHill Suites322 Main StreetRoom Rate: $99

Phone: (605) 559-1600Mention you are with IIASD

*Registration for Convention will be available at a later date.

22

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BIG “I” PRAISES HOUSE FOR SUPPORTING STATE INSURANCE REGULATION BILL Legislation seeks to bring transparency to international insurance negotiations.

The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today praises the U.S. House of Representatives Committee on Financial Services for reporting H.R. 5143, the “Transparent Insurance Standards Act of 2016,” by Rep. Luetkemeyer (R-Missouri) to the full House for consideration.

“This bill would create procedural ‘checks’ for federal officials in international insurance negotiations to ensure that our state-based system of insurance regulation remains strong,” says Charles Symington, Big “I” senior vice president of external and government affairs. “The Big ‘I’ remains dedicated to preserving and modernizing the state-based system of insurance regulation and firmly believes that the attributes of this system dramatically outweigh any perceived shortcomings or inefficiencies.”

H.R. 5143 would install procedural safeguards around international insurance negotiations to ensure the U.S. state-based system of regulation is not needlessly eroded. The legislation would increase transparency and enhance congressional oversight of international deliberations related to insurance. Importantly, the legislation also requires coordination and consultation with state insurance regulators. “With many insurance issues now being discussed on a global level, it is vital that the U.S. has clear objectives and a consistent approach to participating in these discussions,” continues Symington. “The Big ’I’ is grateful for the House Financial Services Committee’s swift consideration of this legislation and hopes the full House will act soon.”

Oprah, Arnold, and Peyton Open a Competing Agency in Your Town…By: John Chapin

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Scary thought, right? Why? Because you know within three to five years they’d own 90 to 100% of the business in the area and if you weren’t out of business, you’d be hanging on by a shoestring. There are several reasons why this group, even with no prior experience in your industry, and even without their celebrity status to rely on, would absolutely dominate your market. Here they are.

Reason #1: Completely unreasonable, some might even say insane, commitmentIf you called their business at midnight on Saturday, how long do you think it would be before you spoke to a live human? Either instantly or within five minutes. How many times would you receive less than stellar customer service or feel like a nuisance to the person answering the phone? Zero. How many times would something not be followed up on? Okay, you get the point. People at the top don’t judge themselves and their organizations based upon what’s reasonable or “acceptable”, they hold themselves, and those around them, to the highest standard possible. This completely unreasonable commitment starts at the top and flows all the way through the organization. How many negative people will you find in the New England Patriots locker room? How many people not doing their job or not holding themselves and others accountable? Right. Zero.

The amount of time, effort, and energy they put in is also disproportional to what others would deem “reasonable.” They are always full-on, pedal-to-the-medal. Michael Phelps was in the pool for eight hours a day, every day, for years before his first Olympics. The best know that seeking “balance” will not get you to the top, never mind keep you there. You need to get unreasonable in what you expect of yourself and others if you’re going to get to and stay at the top.

Reason #2: Focus on differentiation and domination versus competingThe great ones aren’t just looking to be better than the competition and win more business, they’re to be completely different and own the entire market. Look at any leader from Fed. Ex., to Apple, to Umpqua Bank. What do they have in common? They shifted the paradigm and completely changed the way their industry was looked at and perceived. Forget best practices. They went outside their industries and broke the mold to create something new.

These leaders also take full advantage of any and all means at their disposal to win. The New England Patriots have used drop-kicks, eligible and ineligible receivers, linebackers chipping Marshall Faulk and receivers in Super Bowl XXXVI, and numerous other plays and concoctions that have the most experienced officials going to the rule book and instant replay... And other coaches and teams complaining afterwards. Do they push the envelope? Yes. Anyone great over the long haul does.

The best aren’t simply looking for their slice of the pie, they want the whole pie. It amazes me how many companies tell me their annual growth target is something like 3%. And that is in a good market. In a good market you can hit 3% in a coma. If you asked Oprah, Arnold, and Peyton for their growth goal, what do you think it would be? 25% or more. Every year.

Oprah, Arnold, and Peyton would also dominate the airwaves and soundwaves. You’d see and hear them everywhere. From Chambers of Commerce, to community events, to fund raisers, to radio, television, magazines, social media, billboards… They’d be ubiquitous. You wouldn’t be able to get away from them.

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Template for 8 1/2 x 11” bleed ad — allowing for 1/4” trim= 8 3/4” x 11 1/4”

Identity theft is among the fastest growing crimes in the country. Agents must act quickly to ensure their clients’ information remains safe. We have teamed up with Arlington/Roe to offer a data breach solution that goes beyond traditional coverage including:

Your agency cannot afford to be caught off-guard! For more information, contact: John Immordino, jimmordino@arlingtonroe.com

data breach?to respond to a

Can your insurance agency afford $200,000

Covers Paper and Electronic Records Breach Response Services Outside the Limits of Liability Coverage for Regulating Fines and Penalties

Do as much business as possible at the highest service level possible. Exploit your advantages and do everything you can to ensure everyone knows about you and how you’re unique.

Reason #3: An all-or-nothing, do-or-die, burn-the-boats mindsetThe great ones always play with desperation as if their life depends upon winning. Even when far ahead, the best still compete with urgency as if they are losing. They don’t wait for 9-11, a stock market crash, or an economic downturn to get motivated and moving. They chase business as if they are down to their last dollar and are facing serious threats to their business now.

The best of the best turn over every stone, pursue every avenue, and make sure they’ve done everything possible to win. They burn the boats behind them, cut off all escape routes, determined to win or die trying, there is no return home without victory.

Reason #4: Complete ownership and responsibility for success and failure The best know the economy, the market, the government, or anything else, does not determine victory or defeat, they do. They realize that, even in the most difficult conditions, someone is knocking it out of the park and doing more business in spite of the reason everyone else is using for failure. The best are contrarians. When everyone else is cutting costs and expenses in an attempt to survive, they double efforts and expand into the market place. They significantly increase efforts and outreach. The best create their own economies.

Those at the top always focus on and get better at the basics of doing the work necessary, building relationships, getting better at selling, keeping a good attitude, preparing for the price objection, and building value.

Remember that success is up to you, you own it and control it. Provided you have solid goals and strong enough reasons why you need to get there, you’ll get there.

Reason #5: 100% Belief and conviction followed by massive action, persistence, and perseveranceThe best know they are going to exceed their goals and completely dominate their market and that is their single, laser focus. There is simply no doubt they are going to win their industry’s version of the Super Bowl. They take massive action, again, some would say unreasonable, insane action, to make it happen. Whereas most people far underestimate the amount of work it will take to achieve a goal, the best far overestimate the amount of effort necessary and get to work with a raging fire in their belly. And if they fail? They continue until they succeed. No white flags… no retreat, no surrender.

Template for 8 1/2 x 11” bleed ad — allowing for 1/4” trim= 8 3/4” x 11 1/4”

Identity theft is among the fastest growing crimes in the country. Agents must act quickly to ensure their clients’ information remains safe. We have teamed up with Arlington/Roe to offer a data breach solution that goes beyond traditional coverage including:

Your agency cannot afford to be caught off-guard! For more information, contact: John Immordino, jimmordino@arlingtonroe.com

data breach?to respond to a

Can your insurance agency afford $200,000

Covers Paper and Electronic Records Breach Response Services Outside the Limits of Liability Coverage for Regulating Fines and Penalties

Take Action today by contacting:

John Immordino: jimmordino@arlingtonroe.com or Carolyn Hofer: chofer@iiasd.org

Independent Insurance Agents of South Dakota 305 Island Drive Fort Pierre, SD 57532

26

27

How to Guarantee a Bright Future for Your Independent AgencyBy Tom Messina, Vice President and General Manger, Midwest Region, Safeco Insurance

Over the past several years, we have all heard and read dire predictions about the future of the independent agent. Most of those predictions were based on assumptions about the fearsome technological and financial power of huge, highly competitive companies who use their might to target consumers directly. But the IA is still here, still relevant, and still a force to be reckoned with. This is particularly true in South Dakota, where the J.D. Power 2015 Insurance Shopping Study revealed that customers who used a local agent for a new auto insurance policy were more likely than people in other states to choose an independent agent (70% vs 45%)

In a recent internal research study, Safeco Insurance found that the distribution of auto insurance, by channel, was virtually unchanged from 2010 to 2015. That’s a huge accomplishment when you consider what we were up against during each of those five years. As widely reported, the big-brand captives and direct-to-consumer carriers spent a combined total of about $6 billion on consumer advertising. This massive spend, particularly from directs, is designed to commoditize the product and compete on the strength of web sites and mobile apps.

And yet they gained virtually no ground from the independent agent — not even enough to register outside the margin of error. At the same time, Google — one of the largest and most powerful companies on the planet — entered and then quickly withdrew from the market, having made little to no progress toward its early ambitions.

We can all relax now, right?

Not so fast. There is still plenty of risk for the independent agent to be disrupted by increasing competition. Our study also indicates that 60% of customers would consider leaving their independent or exclusive agent and going direct the next time they shop for auto insurance. Meanwhile, 40% of direct customers would consider an IA the next time they decide to change insurance plans. That’s a lot of potential movement, enough to change the complexion of the market if it ever becomes a reality.

So what’s the upshot? How do independent agents remain competitive and thrive in a market where the landscape is fluid and threats seem to grow and multiply? By doing what we do best, and learning a few new tricks. Where did the IA channel get the strength to resist a $30 billion attack for five years? From decades of building relationships, providing value beyond price and running smart, disciplined businesses. In order to weather tomorrow’s storm, we must start preparing today.

Only this time, we don’t have decades to do it.

LOCAL IS A STRENGTH

In our study, the number of consumers who selected “company is local” as an important factor when shopping for auto insurance grew a whopping 72% from 2010 to 2015. So we know that “local” is a selling point of growing importance. We also know that taking advantage of that fact remains a huge, upside opportunity for most of us. Showing your face regularly at community events will remind people that you’re a living, breathing member of the local business community. Getting involved in local causes (beyond donations and sponsorships) will show them that you’re a caring one.

Cultivating a local presence has a long history at McKinneyOlson Insurance based in Sioux Falls, South Dakota. Steve Tripp, a vice president at the agency, recently told us, “Our agency began in the 1880’s and we have strong ties to the community. Today, our team includes millennial agents who share our commitment to giving back. It’s a winning combination, because customers want a relationship with local advisors who are active in the community.”

“LEAN IN” ON DIGITAL

The new rules and tools of engagement no longer apply exclusively to millennials. The rest of us have caught up — social media, email drip campaigns, mobile apps and 24x7 access to digital tools are markers of the “new normal” in business, even small business.

“There’s no doubt about it, you must have a strong presence on the web and embrace social media” says Steve. McKinneyOlson’s consumer-friendly website allows people to research the company, learn about insurance and begin the process of getting a quote. The agency’s Facebook page strives to create a personal connection with prospective and existing customers. The posts are an engaging mix of lifestyle and insurance tips, employee profiles and local news. “One of the most popular features is when we offer gift cards to local businesses. It’s a great way to engage with our followers and support local commerce,” says Steve.

INDEPENDENT BUT NOT ALONE

Even though IAs are “independent” by definition — and there are many strengths that come with independence — the truth is, we’re all part of a community with shared interests and shared risks. If a customer has a bad experience with one IA, the reputation of every IA suffers a tiny bit. Likewise, every time an independent agent delivers ease, choice and advice (a combination that no other distribution channel can match) to a customer, it’s a small victory for all of us.

Sharing ideas that work and stories that inspire is to everyone’s advantage. There are so many opportunities to teach and learn from each other — from the Independent Insurance Agents of South Dakota to online communities like the Independent Agent Community by Safeco on Facebook. If everyone contributed just a fraction of the ideas they consume, the entire community would grow stronger.

By playing to the unique strengths of an IA, developing our digital muscles and creating a shared sense of “brand” we can guarantee a bright future for the independent agent… no matter what challenges lie ahead.

DIVE INTO YOUR DREAM JOB

Easy as 1, 2, 3...

InVEST is a non-profit organization dedicated to improving insurance literacy of students and attracting new talent to the industry. Learn more about InVEST by visiting www.learninsurance.org.

Take a free personality profile at learninsurance.org

and find your insurance career fit.

Explore details about the insurance position right

for you at learninsurance.org.

Visit insurancecareercenter.org to browse and

apply for open positions in the insurance

industry—all at no cost.

Jobs, internships and more atinsurancecareercenter.org

28

DIVE INTO YOUR DREAM JOB

Easy as 1, 2, 3...

InVEST is a non-profit organization dedicated to improving insurance literacy of students and attracting new talent to the industry. Learn more about InVEST by visiting www.learninsurance.org.

Take a free personality profile at learninsurance.org

and find your insurance career fit.

Explore details about the insurance position right

for you at learninsurance.org.

Visit insurancecareercenter.org to browse and

apply for open positions in the insurance

industry—all at no cost.

Jobs, internships and more atinsurancecareercenter.org

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With the dramatic downturn in grain prices, do your grain producers have enough coverage to guarantee their margin?  Probably not…UNLESS…they have  Production Cost Insurance, a NEW PRIVATE product offered by Global Ag Risk Solutions and exclusively from Heartland Crop Insurance. 

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29

POWER IN PARTNERS July 2016

DIAMONDProgressive Insurance Co.

Risk Administration ServicesPLATINUM

Farmers Mutual of Nebraska Financial Markets Inc.

Great American Insurance Co.Great Plains Brokerage

Nationwide Mutual Insurance Co.QBE NAU

GOLD Acuity

CGB Diversified Services, Inc. Columbia Insurance Group Continental Western Group

Dakota Claims ServiceDoss & AssociatesEMC Insurance Co.

Farmers Mutual Hail of IowaGraber & Associates

Intek Cleaning and Restoration International Ag Insurance Solutions

Le Mars Insurance Co.Liberty Mutual Insurance Midwest Family Mutual

North Star Mutual Insurance Co.Pro Ag

Rain & Hail, LLCSFM Mutual Insurance Co.

The IMT GroupUnited Fire Group

Western National InsuranceSILVER

Accident Fund Ins Co. of America American West Insurance

ArmTech Insurance Services Auto-Owners Insurance

Avera Health Plans Buckeye Insurance GroupFarmers Alliance Mutual

NCMIC Finance CorporationNorth American Software Associates

Northwest GF Mutual Insurance Risk Placement Services

Rural Community Insurance ServicesSafeCo

Swiss ReState Auto Insurance Co.

BRONZEBerkley Risk Administrators

Bjornson/Sentinel E & L Expansion Capital Group LLC

Grinnell Mutual Reinsurance Co. Insurance Alternatives, LLC

Missouri Valley Mutual Insurance Co.